Active managers have been adding ETFs to their distribution playbook since Magellan launched the structure in 2015. Around 50 asset managers are represented across the ASX and Cboe, including AMP, Perpetual and AllianceBernstein, as managers turn to public markets for distribution over traditional channels and intermediaries such as investment advisers.

JPMorgan listed its first Australian ETF in November, adding two global equities funds to the ASX as the Wall Street giant sought to counter the surging flow of money to local passive index funds. However, gathering flows has proved tricky. BetaShares estimates that active ETFs, including unlisted inflows, have gathered $2.56 billion since the launch of the first active ETF. Over the same period, index-tracking ETFs have grown by $92.2 billion.

Further, only 20 per cent of assets in dual-class active ETFs – products that have been converted into active ETFs from existing unlisted managed funds – are held via CHESS, meaning the bulk of assets has come from the initial converted assets or via buying in the traditional unlisted managed fund.